Michael Burton 12 April 2018

Business rate pilot councils could see £870m cash boost says think tank

Local authorities are missing out on millions of pounds because of an £870m cash boost to business rate pilot councils, according to a study today from the respected Institute for Fiscal Studies (IFS) think-tank.

The IFS report found that the 147 councils that have been selected to experiment with a 100% business rate retention scheme (BRRS) will between them benefit by £873m in 2018/19.

Had the £873m instead been handed out to all English councils they would have received 2% extra funding worth £16 per head while one in 10 areas would have received £9m in extra funding. 

The report read: ‘This revenue could have been used to reduce the budget deficit or fund tax cuts or higher central government spending. There is therefore an opportunity cost to the 100% business rates retention pilots.’

Despite their cost, the scope for learning from the pilots is ‘limited’ according to the IFS because the pilots - being ‘non-random’ and chosen by the Government - are ‘unlikely to be representative of all councils’ and because the length of the experiment is too short.

For more analysis on this report, please visit The MJ (£).

Why has the move towards 100% retention of business rates been so slow? Read our feature here.

What’s happening inside the LGPS? image

What’s happening inside the LGPS?

Get the most informed take on the challenges and opportunities that substantial reform will bring at this year’s PLSA Local Authority Conference.
SIGN UP
For your free daily news bulletin
Highways jobs

Registered Building Inspector (Band 2/Grade 7)

Health and Safety Executive
£60,760 - £65,776
The Building Safety Regulator (BSR) is transforming building safety regulation across England. United Kingdom / various Locations
Recuriter: Health and Safety Executive

Revenues and Recovery Team Leader

Ashfield District Council
£37,938 - £40,476 per annum (pay award pending)
We have an exciting opportunity for a Revenues and Recovery Team Leader Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Housing Options Officer

Ashfield District Council
£31,067 - £33,366 per annum (pay award pending)
Do you want to make a real difference to the lives of residents in housing need? Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Building Services Operative

Ashfield District Council
£25,584 - £27,269 per annum (pay award pending)
The Facilities team are looking to recruit an enthusiastic individual Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Street Cleansing Technician (CDC)

City Of Doncaster Council
Grade 5, £24,397 per annum (pay award pending)
Do you enjoy working outside, as part of a team that make a direct difference to the communities of Doncaster? Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner